On the Line: Automatic Data Processing CEO Gary Butler

Few companies are as consistent in their earnings and their cash flow and their story as is Automatic Data Processing, Cramer says.

The company just spun off its brokerage business, a $2 billion subsidiary that’s now a standalone equity, leaving ADP with a huge amount of cash. It’s also allowed ADP to streamline operations a bit to boot.

Butler said that ADP is growing earnings per share at fantastic rates and is trading at a 25 PE multiple. So if he can continue to grow share price, that means delivering more long-term value for shareholders if he stays the course.

And don’t pay any attention to a recent report from Bernstein, which mentioned ADP could spin off its dealer services business. Butler expects that business will grow faster than its employer services business this year, though it will be aided by acquisitions.

“I actually believe it has better growth prospects than our employer services business,” Butler said, “and so why would you discard a winner.”

“This is a company that I think represents the best service company in this country,” Cramer said. “I would buy it without any equivocation.”